You’re not done yet! Here’s what to do next…
If you are Self-filing:
- Review the form for accuracy
- Print and sign form. As your own plan administrator, you are required to verify the information and plan holdings is truthful and accurate.
- Mail form by July 31st to: Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0020
If your CPA is filing the form:
- Review form for accuracy
- Share the form with your CPA for further processing
Carefully check (and double check!) the document you just downloaded. The document is editable, so make any changes as necessary.
NOTE: Our preparation software will prepare a draft of form 5500-EZ for you to file. However, you are your own plan administrator. Therefore you are required to verify the information and plan holdings is truthful and accurate. You are also responsible for filing the form with the IRS by July 31st of this year. This form draft is provided without warranty and engagement with a professional tax adviser is recommended. Use provided form at your own risk.
Frequently Asked Questions
What is form 5500-EZ?
IRS Form 5500-EZ is an informational filing by one-participant plans to satisfy certain annual reporting and filing obligations imposed by the IRS.
How do I know my Solo 401k plan value?
Aggregate the total assets for all participants in the plan. If you have taken a participant loan, include the balance in your plan assets. You are required to file a 5500-EZ once the plan assets in your Solo 401k reach $250,000 or greater. For example, if you have $30,000 in the bank and own a rental house worth $240,000, your plan assets total $270,000 and you need to file a 5500-EZ.
Where do I send the signed form?
The Form 5500-EZ must be filed via mail. It should be filled out and mailed to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0020
When is form 5500-EZ due?
The form must be postmarked by no later than July 31st. We recommend sending your form via USPS priority mail or another shipping method that provides you with a tracking number.
Do I have to pay anything to file?
There is no fee to pay to file this form. It is an informational filing only.
What year do I file in?
The 5500-EZ is due on July 31st for the prior year. For example, if your plan assets exceeded $250,000 on December 31st 2019, you need to file the 5500-EZ by July 31st 2020.
Do I need to attach any bank account statements, receipts, or other paperwork with this form?
You do not need to attach any extra documents when filing the 5500-EZ.
Can I file 5500-SF instead of 5500-EZ?
Yes, you can file the online form 5500-SF but keep in mind the questions may differ slightly. We recommend you engage your CPA for help with filing 5500-SF.
Can I get an extension to file my 5500-EZ?
A one-time extension to file Form 5500-EZ (up to 2 ½ months) may be obtained by filing Form 5558 on or before July 31st. For help with this form, please contact your CPA. If you don’t have a CPA able to assist you, we can provide a list of CPAs familiar with the Solo 401k and 5500-EZ filing.
I didn’t file my form 5500-EZ in time. What should I do?
You may be eligible for penalty relief under Revenue Procedure 2015-32. Instructions for late filers may be found at: https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers. We recommend utilizing your CPA to complete this filing.
How do I submit an amended 5500-EZ?
You must submit the amended return using the paper Form 5500-EZ with the IRS.
Help! I don’t have a CPA to help me file this form.
No problem! Reach out to us and we can provide a list of great CPAs in our network who are familiar with the Solo 401k and 5500-EZ filing.
Do I need to complete a separate 5500-EZ for my spouse?
No, all participant accounts are under one 401k plan. Aggregate the assets for you and your spouse’s assets.
If I have an outstanding loan, do I need to include that amount in my account balance?
Yes, your outstanding participant loan balance is still a part of your total plan value.
What if I made contributions this calendar year for last year’s tax year?
If you contributed money this year to be included in last year’s tax year and that contribution pushed your total value over $250,000 then you will need to file form 5500-EZ.
I changed my business address. Do I need to update the IRS?
Check with your CPA, but it may be required you file IRS form 8822-B for a change of address.
Do I need to complete and file Schedule MB or Schedule SB?
Per IRS instructions, Filers of Form 5500-EZ are not required to file schedules or attachments related to Form 5500 with the 2019 Form 5500-EZ. However, you must collect and retain for your records completed Schedule MB (Form 5500), Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information, if applicable, and completed and signed Schedule SB (Form 5500), Single-Employer Defined Benefit Plan Actuarial Information, if applicable. Even though you do not have to file Schedule MB (Form 5500) or Schedule SB (Form 5500) with the 2019 Form 5500-EZ, you are still required to both perform an annual valuastion and maintain the funding records associated with plan funding in the same manner as a plan for which the applicable schedule must be filed.
Your Solo 401k plan is a defined contribution, not defined benefit plan. Therefore, Schedule SB (single-employer defined benefit plan) is not generally applicable. However, as your own Solo 401k plan administrator, you are still responsible for keeping the records and proper annual valuation of your Solo 401k plan.
DISCLAIMER: Please note that this guide is for educational and informational purposes only. The guide is not intended nor should not it be considered a replacement for tax, legal or investment advice. Always consult your tax advisor, CPA and/or legal counsel before filing.